13 Best Natural Gas and Oil Dividend Stocks To Buy

3. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 63

Dividend Yield: 4.5%

Chevron Corporation (NYSE:CVX) produces crude oil, natural gas, and many other essential products, and is the second-largest integrated energy company headquartered in the United States. The company owns five US fuel refineries and also boasts a network of Chevron and Texaco service stations.

Chevron Corporation (NYSE:CVX) reported Q4 2024 earnings of $2.06 per share, missing analysts’ estimates as weak margins dragged its refining business into a loss for the first time since 2020. However, the company reported a revenue of $52.23 billion during the quarter, up 10.7% YoY and above Wall Street estimates by over $3.8 billion, as it increased its worldwide and US production by 7% and 19% respectively to record levels in 2024. The company also generated nearly $8 billion in proceeds from asset sales last year and maintained a strong balance sheet, ending the year with a net debt ratio of 10%.

Chevron Corporation (NYSE:CVX) remains committed to returning value to its shareholders and announced a 5% increase in its quarterly dividend to $1.71 per share, marking the 38th consecutive year with an annual increase in dividend payment per share. Over the last five years, the oil major has grown its dividend faster than the broader market and nearly double the rate of its closest peer. In the past three years, the company has returned $75 billion in cash to shareholders via dividends and share buybacks and has pledged to continue buying back $10 billion to $20 billion of its shares annually, depending on market conditions.

Chevron Corporation (NYSE:CVX) stated last month that it has started oil production from the Whale semi-submersible platform in the deepwater US Gulf of Mexico, bringing the company another step closer to reaching 300,000 net barrels of oil equivalent per day in the Gulf by 2026. Moreover, the project features energy-efficient gas turbines and compression systems, as well as a simplified design model that is expected to deliver lower emissions, lower costs, and higher returns.

Chevron Corporation (NYSE:CVX) was also included in our list of the 10 Best Energy Dividend Stocks to Buy Right Now.